Posted by: Michael Mandel on May 26
I’ve got a new story here about how the housing boom is hurting the rest of the economy.
Unfortunately, I didn’t have room for this wonderful chart, which shows how housing and medical care are squeezing out other types of consumption spending.
This chart shows that outside of housing and medical care, personal consumption has actually plunged to its lowest level ever, as a share of domestic demand.
(In this chart, domestic demand is GDP minus the trade deficit, and the 2005 data is for the first quarter, of course.)
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